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Manufacturers must abide by new law prohibiting unfair business practices

April 13, 2007

Team Bozeman Motorsports in Bozeman, Mont., has successfully advocated for a new state law that more clearly defines the relationship between an OEM and a dealer, specifically limiting the amount of inventory a dealer has to take on.

Dealers in Montana won’t be required to take more than a 90-day supply and OEMs “can’t offer incentives to influence a dealer to take more units,” said Curt Lance, general manager at Team Bozemen.

The law prohibits OEMs from selling or offering similarly equipped model units to dealers at different prices, and from using a promotion plan, marketing plan, allocation plan, flooring assistance plan or other similar devices that result in a lower actual price on units, parts or accessories being charged to one dealer over another.

The law also makes it illegal to require dealers to purchase advertising displays, or to remodel or renovate facilities in order to receive a model or series of vehicles.

Similar bills are being pushed in Texas and Maine.

Read more about the new law in the April 23 edition of Powersports Business.